As foreclosures south of the boarder continue to set new records, many Canadians are anxiously waiting to see whether mass foreclosures are coming to Canada. I can only smile at hearing statements like “it is different here”. History shows that it’s not. Decade after decade, Canadian economy has been following American almost precisely with an eighteen month lag. It has always been this way, and it will always be, unless something changes fundamentally and our tiny economy all of a sudden becomes dramatically less dependent on the US. Also, some fundamental indicators strongly suggest that our foreclosure rate will be at least as bad as or worse than “over there”.

First, consumer debt levels in Canada and the US are almost identical. Second, Canadian real estate is overpriced by at least as much as American was two years ago. And up until now housing prices in Vancouver have been falling faster than they ever did in the States. And last but not least, economies dominated by the commodities sector, like Canadian, tend to be more cyclical and unemployment tends to rise more dramatically during global recessions in countries heavily dependent on commodity exports. No reasonable person can have any serious doubts – mass foreclosures are coming to Canada.

But rather than trembling with fear, I suggest that you look at this fact as an opportunity. New phenomena, like mass foreclosures, often create new opportunities - opportunities to make money. And there is no need to be creative, just look at what is going on where it is already happening. A whole new industry has emerged in the US over the last two years. Myriads of sites like www.youwalkaway.com offer help to people who default on their mortgage payments in dealing with the banks. A completely new type of services in the construction businesses is flourishing – reconditioning repossessed houses. When homeowners turn their houses back to the banks, they often leave them completely trashed. Or vandals do it for them when a house if left unoccupied.

Banks are not in the real estate business and they don’t want to deal with the problem. They pay top dollar for taking care of it quickly and efficiently. Learn how it is done in the US and get into this business even before it starts. Be the first to approach the banks and get your piece of this new pie. And of course, there are tremendous opportunities for fantastic deals. Some of us may get houses which we wouldn’t be able to afford otherwise. And not only houses – furniture, cars, boats and other items too. Recessions like this one don’t happen often. Take advantage of it!

Nikolay Sisan is a Certified Financial Planner and freelance writer in Vancouver.